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The current gold prices are not high but at reasonable levels, said a senior executive of Shandong Gold Mining Co Ltd yesterday amid speculation that the yellow metal would decline further as the greenback continued to regain lost ground.
The company also said it plans to expand annual gold output to 30 tons over the next five years.
"The current prices are reasonable as gold is a non-renewable resource and has natural currency attributes," said Shi Min, president, Shandong Gold Mining Co Ltd at the China Mining Congress and Expo, which opened on Tuesday in Tianjin.
International gold prices have surged sharply since November 2008 and hit a record $1,070 an ounce on Oct 14. While investors fear that the yellow metal may decline as the weak dollar shows recovery signs, Chinese gold producers such as Shandong Gold still remain upbeat about the bullion market.
In June, Shandong Gold reportedly bought the Guilaizhuang gold mine in Shandong province, which has 16 tons of gold resources. The company recently bought a 52-percent stake in a gold mine in Qinghai province.
China has surpassed South Africa to become the world's largest gold producer with a total output of 282 tons last year, according to China Gold Association.
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